Buying Insurance It's Not About The Money

There are more drivers hitting the road each year. With so many vehicles on the road, accidents will happen. Automobile insurance can be the difference between a minor inconvenience and a large hassle. But why is insurance required by law and just how much do you need? Coverage requirements will differ by state/province, but usually include the following: Liability: Liability pays for the expenses you are responsible for in a car collision, including injury and property damage. Bodily injury damages can include medical fees, and lost wages. Property damage can refer to damaged property or loss of use of property. If you are in legal trouble, this type of insurance can pay for your defense and court costs. Local laws usually require minimum amounts, but higher amounts are available and usually recommended. Personal Injury Protection: Personal injury insurance is mandated in some states and is optional in others. Sometimes referred to as no-fault coverage, this pays the medical treatment for you or your passengers regardless of who was at fault. Local government usually sets minimum amounts. Medical Payments: Medical payment coverage is available in non-no-fault states; it pays despite who carries responsibility for a crash. If this type of coverage is bought, the insured person will receive coverage for necessary medical or funeral costs. Collision: Damages that occur from a collision will be paid for under this type of insurance. Comprehensive: This applies if your vehicle is stolen or damaged by something other than an accident, including fire, wind, hail, flood or vandalism. Uninsured Motorist: If you are in an accident with an uninsured driver or a hit-and-run driver, this type of insurance coverage will protect you. Under-Insured Motorist: There are other drivers who have liability insurance that might not be able to cover all the expenses they are responsible for. Under-insured motorist coverage covers you in accidents involving those drivers. Emergency road service, car rental, and other varieties of car insurance can also be purchased. State Farm Clermont